Word: pesos
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Dates: during 1990-1999
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Even as the International Monetary Fund announced a $7.8 billion loan today to helpMexicoout of its currency crisis, President Clinton's once-popular peso rescue plan was hard aground in Congress. A key Democratic senator, Ernest Hollings of South Carolina, this morning attacked Clinton's $40 billon loan guarantee proposal as a "billionaires' bailout," saying Mexico is unlikely to pay it back. "Let's cut out this nonsense of trying to hoodwink the American people," Hollings told the Senate Foreign Affairs Committee, where Chairman Jesse Helms (R-N.C.) ignored GOP leaders more sympathetic to the plan by giving...
...unenviable task of charming, consoling and begging the forgiveness of three American credit-rating agencies, the heads of a dozen U.S. commercial banks and 400 investors and analysts who lost nearly $10 billion last month when Mexico's newly minted President, Ernesto Zedillo Ponce de Leon, abruptly allowed the peso to float against the dollar. To the investors, whose stampede to pull their money out of Mexican stocks and bonds stripped the peso of 41% of its value, Ortiz's message was, Come back, the government has an economic plan to deal with the crisis and knows how to make...
...enormous for Zedillo, they loom large as well for Bill Clinton. Little more than a year ago, the Administration sold NAFTA to Congress by arguing, among other things, that locking in low tariffs would boost the American trade surplus by making U.S. products cheaper in Mexico. Thanks to the peso's plummet, American-made goods could now be as much as 50% more expensive for Mexican consumers. Products from herbal shampoos to frozen desserts sold south of the border will be hard hit. "The peso has been devalued," says Texas A&M trade specialist James Giermanski, "to the point where...
...Mexico get out of her crisis. Because of the devaluation, the country's goods will be cheaper. As a result, manufacturing should go up, creating jobs. (Incidentally, this increase in jobs should hold back the wave of illegal immigration that has also been predicted in the wake of a peso devaluation). NAFTA also guarantees Mexico a certain amount of foreign investment--which is much needed right...
...should also be glad NAFTA has forced Mexico to face certain global economic realities. The expensive peso was unrealistic, but could be kept high under a protectionist economic policy...